- Uniswap plans to release V4 in the third quarter of 2024.
- Despite the growth, concerns are being raised about MEV bots and arbitrage.
The Uniswap Foundation has revealed tentative plans to launch Uniswap (UNI) v4 in the third quarter of 2024.
new development
The project is currently progressing through its initial phase, which includes core code completion, testing, gas optimization, security enhancements, and finalizing peripheral components.
Going forward, the second phase will involve conducting extensive audits, including comprehensive professional audits and involving the community in audit competitions.
Source: X
Uniswap has continued to see a surge in activity over the past few months. During this period, the number of daily active users on the network increased by 26.2%.
Moreover, during this period, fees generated by the protocol increased by 83%. The increased fees not only bolstered the platform’s revenue, but also provided additional resources for continued development.
Source: Token Terminal
There are some problems ahead
However, sentiment towards Uniswap may be influenced by the increasing number of MEV bots and ARB trading.
For context, MEV stands for Miner Extractable Value, meaning the profit miners can extract by reordering and including transactions within a block in a way that benefits them.
MEV bots are automated systems or algorithms that actively exploit opportunities within the trade ordering and execution process to maximize miners’ profits.
Arbitrage, on the other hand, involves taking advantage of price differences for the same asset on different platforms or markets.
In the context of a decentralized exchange like Uniswap, arbitrage can occur when there is a price discrepancy between Uniswap and other trading platforms.
Traders use automated tools or bots to quickly exploit these price differences to make a profit by buying assets where they are cheaper and selling them where they are more expensive.
Realistic or not, UNI’s BTC market cap is:
The growing presence of MEV bots and arbitrage may affect sentiment towards Uniswap as it introduces complexity and potential manipulation elements into the trading environment.
Traders may have to contend with increased competition, potential preemption, and other tactics used by these automated systems that can affect trading results and overall market dynamics.
Source: Sand Analysis
Looking at the token
At the time of press, UNI was trading at $7.51 and the price was up 4.63% in the last 24 hours.
Source: Santiment